Federal Reserve Now World’s Largest Investor: Fed Now Owns Nearly One Third of All US Mortgages (Video)
Federal Reserve Now World’s Largest Investor: Fed Now Owns Nearly One Third of All US Mortgages Video by Wall St for Main St
The Federal Reserve has snapped up $1 trillion of mortgage bonds since March, a record pace of purchasing. The Fed bought around $300 billion of the bonds in each of March and April, and since then has been buying about $100 billion a month. It now owns almost a third of bonds backed by home loans in the U.S. Buying the securities has pushed mortgage rates lower, with the average 30-year rate falling to 2.91% as of last week from 3.3% in early February.